Auckland Council’s Draft 2014/15 Budget and Annual Plan – Have Your Say!

As summarised for us by Dr Grant Hewison.

/ CAPEX budget - $1.8 billion
OPEX budget - $3.3 billion
TOTAL budget - $5.1 billion
(or an increase of around $700 million on the budget
for Annual Plan last year - 2013/14)
Debt increase of $900 million
Rates increase – average 2.5%
UAGC - $373.35 (inc GST) – no change
Water/wastewater - increase of 3.5%/3.75%
Business differential reduction – 0.1 to 2.43
Key consultation topics –
  • Stadium Strategy
  • Annual Auckland Arts Festival
  • Increase in rentals for socialhousing
  • Increase in charges for region-wide health and
  • hygienelicence fees
  • Further funding of the Tāmaki Redevelopment
  • Company

Auckland Council released its Annual Plan 2014/15 on 23 January, with submissions closing at 4pm on 24 February 2014.

The Mayor’s message says he is focused on judicious investment and ongoing savings, which has resulted in a rates increase of 2.5%. This is the final year of the transition period to a single rating system (after which properties of similar value will pay similar rates wherever they are in Auckland). This is also Year 3 of the Long Term Plan (LTP), so in early 2014, the Council will start to prepare the next LTP 2016-26. The Mayor says this will involve a more thorough ‘conversation’ about the capital expenditure programme, alternative revenues, infrastructure funding and sustainable debt levels.

This Plan says it continues the push to deliver key projects, including the City Rail Link, new electric trains and certain roading projects. In addition, the Council continues with local projects such as new libraries, town centre upgrades (e.g. in New Lynn) and ongoing investment in parks and sports grounds.

The capital expenditure budget is $1.8 billion and operating budget is $3.3 billion (or a total of $5.1 billion).

Capital expenditure includes $1.25 billion in new and improved assets and $550 million to restore and replace existing assets ($877M on transport, $345M on water supply and sewerage, $264M on lifestyle and culture (e.g. parks and swimming pools), $101M on developing local communities (e.g. libraries), $95M developing the Auckland economy, $91M drainage and flood protection, and $175M environment and heritage protection). However, the Plan seeks $167M more than the total capital expenditure projected, because Council anticipates that projects will be delayed and the money spent in subsequent years.

The operating budget in 2014/2015 is projected to be $3.3 billion. This provides for a range of services, including transport, solid waste, environmental protection and community services (e.g. hearings on the Unitary Plan, implementing alcohol licensing reform, supporting Special Housing Areas, rolling out electric trains, as well as new bus timetables and integrated ticketing).

Net debt for the Council group will increase from $6.5 billion to $7.4 billion in 2014/2015 (or $900 million dollars – around $2.5 million a day) for investments in new assets. While within council’s prudential levels, the Mayor holds concerns about the level of borrowing (which he is planning to discuss further during the LTP process).

Rates provide approximately 43 per cent of the Council’s operating revenue with the rest coming from grants, subsidies, development and financial contributions, user charges and fees.

The Council applies a business differential to its general rate, which is being lowered over 10 years. The urban business differential ratio will be reduced by 0.1 to 2.43 in 2014/2015 (or about $11 million).

Water and wastewater prices are projected to increase by around 3.5 per cent and 3.75 per cent in 2014/15. The total revenue for water and wastewater in 2014/15 is forecast to be $500 million.

Key consultation topics for the 2013/14 Annual Plan include:

  • Auckland’s proposed stadium strategy (Council is asking if you support the proposed strategy for Auckland’s four major stadiums (Eden Park, Mount Smart, Western Springs, North Harbour) and if you have any comments on the proposed uses for each stadium?
  • making the Auckland Arts Festival an annual event(Council is asking ifyou support making the Auckland Arts Festival an annual event at a cost of $3.2 million per year)

The Council is also increasing rentalchargesforsocialhousing, increasing fees and charges (including health and hygiene licence fees), and providing further funding of the Tāmaki Redevelopment Company.

The Annual Plan also identifies a number of key ‘regional’ activities for 2014/15, including:

  • Progressing the notified Unitary Plan
  • Reviewing the model of the seven substantive CCOs (Auckland Transport, Watercare Services, ATEED, Waterfront Auckland, Regional Facilities Auckland, Auckland Council Property Ltd, Auckland Council Investments Ltd)
  • Reviewing and making new bylaws (e.g. signs, stormwater and trading in public places)
  • Preparing a remuneration policy (including investigating the costs and wider implications of the Living Wage Policy)
  • Partnering with Auckland businesses to better match skills supply and demand
  • Continuing pilots and trials for new waste services (including ‘disposer-pays’ charging for refuse and the introduction of kerbside organics collection)
  • Implementing the regional ‘Graffiti Vandalism Prevention Plan’

Anyone can make a submission on the Council’s Plan or their Local Board Budget Agreement and participate in the ‘round-table’ hearings. Have your say!